The agreement between Dhaka Stock Exchange and Chinese consortium will bear good fruits as the consortium jointly promote the Bangladeshi capital market with other stakeholders, said  Finance Minister AMA Muhith.

“We believe this deal is going to be a very important factor in Bangladesh economy,” Muhith said this at the agreement signing ceremony  between Dhaka Stock Exchange Ltd and the consortium of Shanghai Stock Exchange and Shenzhen Stock Exchange at a hotel in the capital yesterday.

 “This is a red letter day for the capital market in Bangladesh because the capital market stands at a new height by signing the agreement,” Muhith added.

He hoped that partnership with the Chinese consortium will contribute significantly to the development of stock market.

DSE Managing Director KAM Majedur Rahman, chair of the Supervisory Board of the Shanghai Stock Exchange Pan Xuexian, President and Chief Executive Officer (CEO) of the Shenzhen Stock Exchange Wang Jianjun signed the agreement on behalf of their respective sides.

DSE Chairman Professor Dr Abul Hashem presided over the function.

Speaking at the ceremony, Bangladesh Securities and Exchange Commission (BSEC) Chairman Professor Dr M Khairul Hossain said this deal is made to ensure better corporate culture, promote strategic investment and improve the liquidity situation in the market.

"From 2011 to 2013, we spent all the time trying to reforms laws for Bangladesh exchanges,

Dhaka and Chittagong stock exchanges," Muhith added.

Citing the success and expertise of Chinese exchanges, Muhith said the authorities concerned should follow their speed and let make a difference in the country's stock exchanges.

In last few years, M Khairul Hossain said, they have taken a series of reforms for the betterment of stock market.

"As a result, stock markets are now more transparent and accountable to investors and stakeholders," he added.

Earlier, in response to a DSE offer, the Chinese consortium and the National Stock Exchange (NSE) of India placed their proposals to buy 25 per cent shares of the DSE and become a strategic investor.

DSE took the decision to sell its 25 per cent shares to the Chinese consortium of SSE and SZSE as part of its demutualisation scheme.

According to the 2013 demutualisation scheme, 25 per cent shares of the Dhaka Stock Exchange Limited will be sold to strategic partners, 35 per cent to small investors while 40 per cent will be with the Trading Right Entitlement Certificate (TREC) holders.

The Chinese consortium, of SSE and Shenzhen Stock Exchange (SZSE), submitted a tender offering Tk. 22 a share for 25 per cent or 45.09 crore shares (worth Tk. 992 crore) of the DSE. SZSE and SSE are among the three bourses of China, the other being the Hong Kong Stock Exchange.

EA